IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v55y2005i1-2p5-24.html
   My bibliography  Save this article

The Labor Market in the Czech Republic: Trends, Policies, and Attitudes (in English)

Author

Listed:
  • Vladislav Flek

    (Czech National Bank and IES-FSV, Charles University, Prague)

  • Jiøí Veèerník

    (Institute of Sociology, Czech Academy of Sciences, Prague)

Abstract

The Czech Republic is no longer an employment haven, the site of what had been declared as an “unemployment miracle.” What happened? In this paper, the authors gather various statistical and sociological data on employment and unemployment trends, wage development, and workers’ opinions and their labor market strategies, taken from various surveys. In such manner, not only is the history of the Czech labor market over the past decade written, but also the reasons for the deteriorating labor market performance are addressed, and an appropriate policy agenda is outlined. In particular, the authors identify existing labor market rigidities and show that high unemployment here proceeds in an ever-widening gyre, resulting in the emergence of the unemployment trap and benefit dependency. Active labor market policy measures alone appear to be insufficient to deal with this problem.

Suggested Citation

  • Vladislav Flek & Jiøí Veèerník, 2005. "The Labor Market in the Czech Republic: Trends, Policies, and Attitudes (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 5-24, January.
    • Handle: RePEc:fau:fauart:v:55:y:2005:i:1-2:p:5-24
    as

    Download full text from publisher

    File URL: http://journal.fsv.cuni.cz/storage/1003_s_005_024.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vladislav Flek & Jiri Vecernik, 1998. "Employment and Wage Structures in the Czech Republic," Archive of Monetary Policy Division Working Papers 1998/03, Czech National Bank.
    2. Vladislav Flek & Mojmír Hájek & Jaromír Hurník & Ladislav Prokop & Lenka Racková, 2001. "Výkonnost a struktura nabídkové strany [Supply-side performance and structure]," Politická ekonomie, Prague University of Economics and Business, vol. 2001(6).
    3. Swati Basu & Saul Estrin & Jan Svejnar, 1997. "Employment and wage behaviour of industrial enterprises in transition economies: The cases of Poland and Czechoslovakia1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(2), pages 271-287, November.
    4. Boeri, Tito, 1997. "Learning from Transition Economies: Assessing Labor Market Policies across Central and Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 366-384, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Guzi, 2014. "An Empirical Analysis of Welfare Dependence in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(5), pages 407-431, November.
    2. Petr Mareš & Tomáš Sirovátka, 2005. "Unemployment, Labour Marginalisation, and Deprivation (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 54-67, January.
    3. Jaromír Gottvald, 2005. "Czech Labor Market Flows 1993-2003 (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 41-53, January.
    4. Dvouletý Ondřej, 2017. "Does the Self-employment Policy Reduce Unemployment and Increase Employment? Empirical Evidence from the Czech Regions," Central European Journal of Public Policy, Sciendo, vol. 11(2), pages 11-22, December.
    5. Renat Butabaev, 2015. "There is no growth without change - policy implications for transition economies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(1), pages 69-84.
    6. Železník Martin, 2011. "Labor Market Regulation and its Characteristics: Comparison Between Czech Republic and Austria," Review of Economic Perspectives, Sciendo, vol. 11(2), pages 93-120, January.
    7. Daniel Němec, 2013. "Investigating Differences Between the Czech and Slovak Labour Market Using a Small DSGE Model with Search and Matching Frictions," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 7(1), pages 021-041, March.
    8. Wadim Strielkowski & Jan Hněvkovský, 2013. "The Performance Of The Czech Labour Market After The 2004 Eu Enlargement," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(197), pages 79-94, April – J.
    9. Jan Winiecki, 2008. "Employment and unemployment in transition: the legacy of the communist past," Post-Communist Economies, Taylor & Francis Journals, vol. 20(3), pages 377-390.
    10. Mr. Martin Schindler & Ms. Mariya Aleksynska, 2011. "Labor Market Regulations in Low-, Middle- and High-Income Countries: A New Panel Database," IMF Working Papers 2011/154, International Monetary Fund.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vladislav Flek & Jiri Vecernik, 1998. "Employment and Wage Structures in the Czech Republic," Archive of Monetary Policy Division Working Papers 1998/03, Czech National Bank.
    2. Polterovich, Victor, 2000. "Employment- wage decisions in the insider-owned firm," BOFIT Discussion Papers 1/2000, Bank of Finland, Institute for Economies in Transition.
    3. Lubyova, M. & van Ours, J.C., 1998. "Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic," Other publications TiSEM e62c1a51-04ed-47fd-8d54-4, Tilburg University, School of Economics and Management.
    4. Jozef Konings & Olga Kupets & Hartmut Lehmann, 2002. "Gross Job Flows in Ukraine: Size, Ownership and Trade Effects," William Davidson Institute Working Papers Series 521, William Davidson Institute at the University of Michigan.
    5. repec:lic:licosd:12602 is not listed on IDEAS
    6. Fiona Duffy & Patrick Paul Walsh, 2000. "Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey," William Davidson Institute Working Papers Series 364, William Davidson Institute at the University of Michigan.
    7. Irina Denisova, 2001. "Staying Longer on Unemployment Register in Russia: Lack of Education, Bad Luck or Something Else?," Working Papers w0017, New Economic School (NES), revised Nov 2002.
    8. Tamar Pkhakadze, 2022. "Youth unemployment in the European Union and transition period - from education to the labour market," Technium Social Sciences Journal, Technium Science, vol. 35(1), pages 532-540, September.
    9. repec:cnb:ocpubv:as16 is not listed on IDEAS
    10. Laila Porras, 2010. "Labour Market Trends during Post-Socialist Transformation: The Cases of the Czech Republic, Hungary and Russia," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    11. Vladislav Flek & Lenka Marková & Jiøí Podpiera, 2003. "Sectoral Productivity and Real Exchange Rate Appreciation: Much Ado about Nothing?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 53(3-4), pages 130-153, March.
    12. Filip Novotný, 2003. "Vliv zhodnocení koruny na český podnikový sektor [Effect of czech crown appreciation on czech corporate sector]," Politická ekonomie, Prague University of Economics and Business, vol. 2003(5), pages 661-675.
    13. Polterovich, Victor, 2000. "Employment- wage decisions in the insider-owned firm," BOFIT Discussion Papers 1/2000, Bank of Finland Institute for Emerging Economies (BOFIT).
    14. Vladislav FLEK, 2005. "The Czech Labour Market: From “Success Story” to Painful Reality (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 2-4, January.
    15. Hartmut Lehmann & Jochen Kluve, 2010. "Assessing Active Labour Market Policies in Transition Economies," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 11, pages 275-307, AIEL - Associazione Italiana Economisti del Lavoro.
    16. Jiří Večerník, 2001. "Earnings disparities in the czech republic: evidence of the past decade and cross-national comparison," Prague Economic Papers, Prague University of Economics and Business, vol. 2001(3).
    17. Lehmann, Hartmut & Philips, Kaia & Wadsworth, Jonathan, 2005. "The incidence and cost of job loss in a transition economy: displaced workers in Estonia, 1989 to 1999," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 59-87, March.
    18. Magdalena Borys & Roman Horváth & Michal Franta, 2009. "The effects of monetary policy in the Czech Republic: an empirical study," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(4), pages 419-443, November.
    19. Lubyova, Martina & van Ours, Jan C., 1999. "Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 90-112, March.
    20. Magda, Iga & Rycx, François & Tojerow, Ilan & Valsamis, Daphné, 2008. "Wage Differentials across Sectors in Europe: An East-West Comparison," IZA Discussion Papers 3830, Institute of Labor Economics (IZA).
    21. Jan Svejnar, 2002. "Transition Economies: Performance and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 3-28, Winter.
    22. Stepan Jurajda & Katherine Terrell, 2001. "What Drives the Speed of Job Reallocation during Episodes of Massive Adjustment?," CERGE-EI Working Papers wp170, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

    More about this item

    Keywords

    employment and unemployment structures; labor market policy; labor mobility; minimum wage; social and unemployment benefits; wage inflation and differentiation;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:fauart:v:55:y:2005:i:1-2:p:5-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.